Fuel Marketers Threaten Nationwide Shutdown Over Petrol Price Controls
A major confrontation is looming in A major confrontation is looming in Nigeria’s downstream petroleum sector as independent fuel marketers have threatened to shut down filling stations across the country if the Federal Government moves to regulate petrol prices.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged regulators to ensure Nigerians benefit from falling global crude oil prices while discouraging excessive profiteering in the downstream sector.
Reacting to the government’s position, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, argued that any attempt to control petrol prices contradicts the principles of deregulation established under the Petroleum Industry Act (PIA).
Ukadike maintained that marketers cannot be compelled to sell petroleum products at government-determined prices without considering their actual landing and purchase costs. He warned that enforcing price controls could force marketers to suspend operations nationwide.
He explained that many independent marketers are already struggling with financial losses caused by frequent reductions in depot prices after purchasing products at higher rates. According to him, many operators rely on bank loans to finance product purchases and cannot continue to absorb mounting losses.
The IPMAN spokesman stressed that healthy market competition, increased local refining capacity, and improved supply chains remain the best ways to reduce fuel prices sustainably rather than introducing administrative price controls.
He further urged the Federal Government to encourage more investment in the downstream sector and support local refining to boost supply and naturally lower pump prices.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) acknowledged the government’s responsibility to protect consumers from exploitation but called for wider consultations with stakeholders before introducing any pricing measures.
The latest development comes amid growing public calls for lower petrol prices following the decline in global crude oil prices after easing geopolitical tensions in the Middle East. Government officials maintain that although the downstream sector is deregulated, regulators still have a responsibility to prevent exploitative pricing practices. downstream petroleum sector as independent fuel marketers have threatened to shut down filling stations across the country if the Federal Government moves to regulate petrol prices.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged regulators to ensure Nigerians benefit from falling global crude oil prices while discouraging excessive profiteering in the downstream sector.
Reacting to the government’s position, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, argued that any attempt to control petrol prices contradicts the principles of deregulation established under the Petroleum Industry Act (PIA).
Ukadike maintained that marketers cannot be compelled to sell petroleum products at government-determined prices without considering their actual landing and purchase costs. He warned that enforcing price controls could force marketers to suspend operations nationwide.
He explained that many independent marketers are already struggling with financial losses caused by frequent reductions in depot prices after purchasing products at higher rates. According to him, many operators rely on bank loans to finance product purchases and cannot continue to absorb mounting losses.
The IPMAN spokesman stressed that healthy market competition, increased local refining capacity, and improved supply chains remain the best ways to reduce fuel prices sustainably rather than introducing administrative price controls.
He further urged the Federal Government to encourage more investment in the downstream sector and support local refining to boost supply and naturally lower pump prices.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) acknowledged the government’s responsibility to protect consumers from exploitation but called for wider consultations with stakeholders before introducing any pricing measures.
The latest development comes amid growing public calls for lower petrol prices following the decline in global crude oil prices after easing geopolitical tensions in the Middle East. Government officials maintain that although the downstream sector is deregulated, regulators still have a responsibility to prevent exploitative pricing practices.
